The global trade landscape reflects diverse tariff structures imposed by countries on US imports, influencing trade flows and bilateral relationships. This article examines the tariff rates in India, Vietnam, China, Mexico, and Indonesia, alongside their implications for trade dynamics.
Key Tariff Data
| Country | US Imports with ≤10% Tariff | US Imports with 10-20% Tariff | US Imports with 20-30% Tariff | US Imports with >30% Tariff |
|---|---|---|---|---|
| India | 65.3% | 17.9% | 15.1% | 4% |
| China | 90% | Not Specified | Not Specified | Not Specified |
| Mexico | Nearly 80% | Not Specified | Not Specified | 1% |
| Indonesia | 79% | Not Specified | Not Specified | 1% |
| Vietnam | 63.5% | 24.4% | 9.2% | 3% |
- Low-Tariff Advantage:
- China (90%) and Mexico (~80%) offer lower tariffs on a higher percentage of US imports, enhancing their competitiveness.
- In contrast, India (65.3%) and Vietnam (63.5%) have steeper tariff structures, impacting trade dynamics.
- Mid-Range Tariffs (10-20%):
- Vietnam (24.4%) imposes a higher proportion of mid-range tariffs compared to India (17.9%).
- Higher Tariffs (Over 30%):
- Both India (4%) and Vietnam (3%) have limited segments imposing tariffs over 30%, which might discourage US exporters in specific sectors.
- Minimal Gains for the US:
- Even substantial tariff reductions in these countries would translate into only about $5 billion in additional US exports, highlighting limited short-term gains.
Strategic Implications
- For India and Vietnam:
- Addressing tariff barriers and diversifying trade portfolios can help attract higher volumes of US imports, particularly in sectors where China and Mexico dominate.
- For the US:
- While tariff reductions offer limited immediate gains, focusing on non-tariff barriers and market-specific strategies might yield better outcomes.
- Global Trade Dynamics:
- The disparity in tariff structures underscores the need for targeted trade negotiations to level the playing field.
The chart above provides a comparison of trade volumes by country, showing the number of products traded by India, China, and Vietnam.
Glottis Limited 
Leave a comment